British expats living overseas can sometimes find it difficult to secure a UK mortgage, particularly when their income is paid in a foreign currency. I recently assisted a British national living and working in the UAE who wanted to refinance his residential property in the UK.
The client owned three UK properties, including two buy-to-lets and a residential property used by his family. He wanted to remortgage the residential property but had struggled to find a suitable lender willing to consider his UAE residency and income paid in Dirham.
Although the property was located in the British countryside, it remained an important part of the client’s life in the UK. It was used as a family home when he returned from the UAE, making it important that the refinancing solution worked around his international circumstances.
The client also had a demanding career which meant he had limited time to approach lenders himself. He therefore contacted the Enness UAE team, who referred the case to our London office to explore the wider lending market.
OUR SOLUTION
When arranging finance for British expats, lenders can take different approaches to overseas residency and foreign currency income. Private banks can sometimes provide greater flexibility, but they are not necessarily the only option.
In this case, the London team identified a high-street lender that was comfortable considering a British expat earning in Dirham. This provided an attractive alternative to the more specialist private banking route and allowed the client to access a mainstream mortgage product despite living and working overseas.
The case demonstrates why international mortgage expertise can be valuable for British expats looking to retain or refinance UK property. A borrower’s country of residence, currency of income and wider property interests can all influence which lenders are willing to consider an application.
For borrowers receiving their income in a currency other than sterling, a foreign currency mortgage may also be relevant depending on the circumstances and lender criteria.
The client was also referred to the Enness insurance team to review the appropriate insurance arrangements for his UK property.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, property suitability and lender criteria. Terms, rates, LTVs and availability may vary depending on individual circumstances.
Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it. Property values can fall as well as rise. Foreign currency borrowing can also expose borrowers to exchange-rate movements, which may affect the sterling cost of repayments and the outstanding balance.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
